Please identify each statement as true or false if the theory of rantional holds. Using complete information about only the past, agents form their most accurate expectations about the future. Long economic adjustments take the exact time that agents predicted. Aggregate supply is vertical over time. Using all the information currently available, agents form their most accurate expectations about the future. Price adjustments take less time than people predicted. Fiscal policy, like tax cuts, is highly ineffective. Price adjustments happen faster than when prices are "sticky". Answer Bank

Afreezer manufacturer might purchase sheets of steel, wiring, shelving, and so forth, as part of its final product. this is an example of what sub-classification of business market?

Owning a word is a characteristic of a powerful a. productb. servicec. organization d. brand

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out